Crisis project management

Tired of haphazardly putting out your company's fires? Why not take a lesson from the professionals?

Many corporate executives seem to think that their project manager's main mission is to deal with one crisis after another. While this is a somewhat unflattering view of a project manager's life, it is, nevertheless, all too often true. Most project managers are most effective at dealing with planned, scheduled events—they know how to get things done. Unfortunately, they may have little specific training in dealing with major crises.

Conversely, corporate crisis planners/ managers may have little training in the principles of project management—principles which could help to get their job done in a crisis situation. What would happen if the fields of project management and crisis management were more closely interrelated. The following story illustrates how combining the skills of the two disciplines can lead to more effective crisis and project management.

John Ryan was on his way home from the grocery store when the alarm tones he knew only too well began to sound over his car's two-way radio. As chief of the Rosemont Farms Volunteer Fire Company he was used to unplanned interruptions of his daily routine. This was no different. He had taken his lunch hour to pickup a few things at the store and drop them off at home on the way back to work—managing the construction of a commercial building.

The summer heat and drought hadn't let up… The ice cream I promised my kids will be a loss, Ryan thought even before the dispatcher announced his new mission.

“Rosemont Base to all Rosemont Firefighters. Report to your station. I have a report of a plane down—38 Rural Route 2—structure and brush fire.”

Ryan's heart and mind began to race as he switched on the lights and siren and wove through the noontime traffic. Most likely a prank call, but can't be sure. Ryan forced himself to think … analyze the situation—don'ftbe disfracted by the siren and traffic.

Rural Route 2 is near a small landing strip used by schools for flight training. Someone miscalculated in his lesson—a few injuries are probably involved. The brush fire is a problem in this dry heat—neighboring housing developments could be in danger.

Now that John had thought about the extent of the problem, he now forced himself to think about the required resources to address it. Think like a Project Manager. No fire hydrants in this area—We'll need neighboring Highland's tankers for wafer. It's noon on a weekday and most of Rosemont's volunteers work out of town and out of range of the beckoning fire siren. Manpower will be a problem. Compounding the situation is the blistering heat. If this situation is serious, I‘ll need extra crews for shift work.

But wait, Ryan thought, this might only be some child's gas model airplane touching off a little brushfire-or a prank altogether. I need more information.

“Rosemont Base, this is Rosemont C-1.” “Go ahead, Chief,” the base responded. “Have police arrived at the scene? Do you have a report?” “Police just arrived; they report smoke and flames visible from a large brush fire and farmhouse with second story fully involved.”

This is real. I need help fast.

“Rosemont Base. I need a M.A.R.S. alarm and Highland's Tankers 1 and 2.” “Received.”

Ryan's foot unconsciously pressed on the accelerator. There was no more time for planning. He now needed to get to the scene. Two minutes had elapsed since the alarm sounded.

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Figure 1. The Crisis Control Model
The logical steps in preparing for and resolving a major crisis.

PLANNING

A crisis can happen to any company; a toxic chemical spill, hostages, a plane crash with company executives on board, product liability suits, tainted (poisoned) products, computer viruses, company espionage, an earthquake at the company's computer center. The list is endless and no operation is immune. Overnight, the once successful company may find itself fighting for its very life. How well a company responds to a crisis situation depends largely on the training it provides to designated individuals and on the company's investment in crisis planning.

Another critical variable is the personality of the individuals selected to be crisis control managers. These individuals must have the basic talent for crisis management. In addition to their normal duties, in times of crisis, they rise to the occasion and become the crisis control managers. Formal training in stress management, public relations, decision making, and leadership skills can contribute to their being a usable resource in times of emergencies. Education, training and experience are the building blocks of the Basic Knowledge component of the Crisis Control Model (see Figure 1).

The Crisis Control Model defines the generic, logical steps required in preparing for and in resolving a major crisis. You will find that no matter what type of crisis you may face in your personal or professional world, you probably follow this model's pattern. How well you deal with the crisis depends on how well you deal with each one of the model's components. In this story, John Ryan is the crisis control manager in the form of a fire chief. We will follow his thought process as he deals with his real-world crisis.

Just having a designated crisis control manager is not enough. John's experience as fire chief would be incomplete without a certain amount of foresight and planning. The model describes this as Potential Problem Analysis. The types of crises that can befall a company usually can be grouped by the types and magnitude of responses necessary. The crisis control manager should thoroughly think out various crisis scenarios and know exactly what resources are available at any given time.

While it is not possible to consider every possible scenario, several recent disasters illustrate a company's failure to adequately consider worst-case possibilities. The Exxon oil spill in Alaska and Union Carbide's Bophal incident are examples.

In the Rosemont incident, John called for a M.A.R.S. alarm. This told the dispatcher to initiate the Mutual Aid Response System. Establishing M.A.R.S., had resulted from a simple process of meeting with neighboring fire chiefs and agreeing on response procedures. John knew that this alarm would bring in three pumpers, an aerial truck, a rescue vehicle that doubled as a mobile command post and about 50 firefighters from three neighboring communities. Prior training exercises told him that they should arrive in about 15 minutes.

John's Basic Knowledge plus his Potential Problem Analysis equals or defines the Strategic Plan for this given situation in Rosemont. John already made his preliminary assessment of the situation and ordered the appropriate strategic plan. This component of the Crisis Control Model is analogous to the Planning component of a Project Management Model (see Figure 2).

A crisis can be thought of as an intense, high-risk project that must be managed to obtain the desired results. In the case of a crisis, the desired result is minimized damage. The principles of effective project management can and should be applied to crisis management. While following John's thought process through the Crisis Control Model, reference will also be made to the Project Management Model.

John's project management training was a valuable asset to the volunteer fire company. It was now time for him to execute the plan.

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Ryan saw the smoke as he came over the hill. The first thing that caught his eye as he pulled onto the scene was the plane's tail section— Southern Airlines; not a trainer as he had assumed but a twin prop commuter plane. Fortunately, there was no fire at the plane but certainly there were numerous injuries. Injuries? I forgot to dispatch ambulances…

Figure 2. A Project Planning Model A model identifying the steps leading towards the effective management of projects.

The farmhouse was not fully engulfed in flames and the brush fire was rapidly moving away—toward the new housing development. Ryan's eyes panned the scene as he continued to size up the situation— reassessing the scope of the problem. Already there were bystanders shouting advice at him and doing what he knew were the dumbest things, like using a garden hose on the house. Stay calm, don't get rattled.

Then he saw it. Just next to where the plane came to rest was the farm's diesel fuel tank. Having been clipped by the plane's wing, it was ruptured and gushing fuel. Fortunately, it was not yet burning, but the diesel was running towards a nearby stream and the brush fire.

“Rosemont C-1 to Rosemont Base. Please dispatch the county Hazardous Materials Team. We have a diesel fuel spill.”

Ryan's next job was to direct his people. His fire engine had just arrived with a crew of four firefighters. He allocated two with a hose line to protect the injured in the plane from any possible fire and two with shovels to try to dike the flow of fuel. Help would be herein ten minutes. Ryan's mind raced, the press would be second-guessing tomorrow why the first “firefighters” did not fight the house or brush fire.

Ryan quickly put on his protective bunker gear and rushed to help with the injured in the plane. His management style had always been to lead by example.

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EXECUTION

Scope control, resource allocation and directed leadership are the key ingredients to effective execution of crisis management, just as they are with project management.

Crisis situations seem to thrive on changing conditions. The crisis control manager, like any project manager, must be prepared to react to changes in conditions and/or the problem scope. Just as John switched priorities by changing his initial mission from fire fighting to rescue and hazardous material containment, project managers redefine scope and implement contingency plans.

When John recognized the hazardous material situation, he immediately called in the specialists he knew were available. Calling for the right help and adequate help is one of the most important functions of the crisis control manager at this point. Without the planning and training John had been through, he would not have known whom to call or even if specialized resources were available.

In a business crisis setting, management of resources is equally important. A hostile takeover attempt, for example, might require specialized financial advisors, public relations and legal assistance. Just knowing who is available and how to obtain their services in advance can immeasurably improve the crisis control manager's performance in such a crisis.

The crisis control manager must direct his or her available resources in the direction having the highest priority and in a direction where such efforts can make a difference. Although the farmhouse fire was the most dramatic evidence of the crisis, John was powerless to do anything about it with only four firefighters. Furthermore, it was not the most significant threat to additional damage or loss of life.

A crisis is not the time for consensus decision making. While the crisis control manager must be open to suggestions and information, he must act decisively and quickly. In most crisis situations, the worst decision is no decision and the second worst decision is a late one. The crisis control manager needs to be on the scene to direct his or her resources with a “cool head.”

Figure 3. The Crisis Project Management Model The effective management of a crisis is illustrated by the combined attributes of the crisis control model and the project management model.

The strategic plan for a major weekday incident was developed months earlier. It was now paying off as the crisis control manager assessed (sized-up as the Crisis Control Model illustrates) the situation. John formulated an Operational Strategy and specified Tactics that he would use when help arrived. Each of these Crisis Control Model components is analogous to the Execution component of the Project Management Model.

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“Rosemont C-1, this is Forrest View C-1. We're approaching the scene with Engine 1, Squad 1 and a crew of ten.”

“Forrest View C-1. Take responsibility for the brush fire; protect the subdivision exposure. You have the first Highland Tanker when it arrives at the scene, Ryan responded. Report status as soon as possible.”

“Richland C-2 calling Rosemont C-1. We're on the scene with Rescue-1, Engine 1 and a crew of six, the Richland assistant chief radioed.”

The Richland assistant chief was relatively untested for rescue, but John had no choice. The best he could do was to supervise the situation a little closer than he would have if the Richland chief were there.

“Richland, take command of victim rescue. Establish Rosemont Command at the plane site.” “10-4.”

When the County Hazmat Team arrives they will be put in charge of the fuel spill. Other arriving resources will be allocated as necessary. So far, so good, Ryan thought.

CONTROL

No matter how well-trained or experienced a crisis control manager can be, it is impossible for one individual to directly handle all aspects of a major crisis. The crisis control manager must delegate supervisory responsibility of various aspects of the crisis to qualified managers.

At the same time, a reporting chain of command must be established.

Like any project, effective control is enhanced by clear and concise status reporting. John established the Mobile Command Post (Rescue-1) as “Rosemont Command.” This order provided a physical location of command and, as the Rosemont chief, further established his authority as the officer-in-charge. Arriving emergency units, the press, and concerned citizens now had a place to turn for valid information. John also asked for status reports from his sub-commanders. Timely, accurate information is the key to effective control.

Effective communication of information to those who need to know (including the public) is an important function of the crisis control manager. The 1979 nuclear accident at Metropolitan Edison's Three Mile Island Nuclear Plant is an illustration of the negative effects of poor communication. The Kemeny Commission's report on the accident found that Met Ed's handling of information during the early stages of the accident lead to its loss of credibility as an information source. This resulted in reduced capacity of the nearby public to react to the crisis. Union Carbide's Bophal neighbors had no warning whatsoever as toxic gases invaded their homes.

The crisis control manager's tactics produce either Controlled Results or Uncontrolled Results. The Crisis Control Model illustrates how uncontrolled results should lead to a re-evaluation of the strategic plan and a reassessment of the existing situation. Should the emergency teams continue to do what they've been doing or is a new strategy and tactic required? Frequently, the very nature of a crisis changes and the strategy must change with it. Exercising the wrong strategy could make matters worse. Clearly, the Project Management Model's Control component reflects this same reassessment of the plan.

By now, the reader should see that the Crisis Control Model and the Project Management Model are really two similar ways of looking at and dealing with a crisis situation. Key principles of both maybe combined to obtain the best results. Figure 3 shows how the two models can be. integrated into what we will call the Crisis Project Management Model. By applying many proven project management techniques to crisis situations, the chances of obtaining desirable results will be enhanced.

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Three hours later, the Rosemont crisis was nearly over. Emergency units were returning to their stations. Everyone was exhausted from the heat and physical and emotional activity. The farmhouse was a total loss, but the fuel never made it to the stream and the subdivision was saved. The plane crash produced only a few injuries, and only one firefighter was slightly hurt.

Ryan reflected on his own performance as he struggled out of his bunker gear. He lost two minutes by not dispatching ambulances immediately. That could have meant death for several victims—lucky this time. He made a mental note to revise the M.A.R.S. alarm procedure to automatically include medics. The next drill night would include a complete critique of everyone's performance. Next time we'll do better.

Drained, Ryan slumped into the back seat of his car next to the groceries. He could only smile to himself as he felt the puddle of melted ice cream soak into his already drenched work clothes.

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Clearly project management and crisis management skills can be combined to more effectively deal with crisis situations. The Crisis Project Management Model illustrates how these two fields overlap. Corporate executives should ask themselves if they are as ready as they should be to deal with company-threatening situations.

W. Stephen Sawle, P.E., P.M.P. received a B.S. and M.S. in civil engineering at Cornell University and a masters of-business administration degree from the University of Pittsburgh. Mr. Sawle is currently a senior manager of consulting services for Price Waterhouse's National Utility Consulting Practice specializing in project and construction management.

In addition to being a certified project management professional, he is a registered professional engineer and a certified management consultant. He is a frequent speaker at PMI‘s annual seminar and symposium. He is also president and assistant chief of the Ben Avon Heights (Pennsylvania) Volunteer Fire Company.